Bhutan Flag

Brief History. A Lamaistic Buddhist theocracy was established in Bhutan in the 16th century. Bhutan came under the domination of the British in India in 1865. after signing the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land. It became a British protectorate in 1910. After India was granted independence from Great Britain, it granted Bhutan independence in 1947.